Workforce Innovation and Opportunity Act Presentation at the Austrian Embassy workshop on European/U.S. Workforce Programs Randall W. Eberts W.E. Upjohn Institute for Employment Research November 13, 2018

WIOA: National Workforce Development System WIOA enacted in July 2014; replaced the Workforce Investment Act (1998) Federal-state-local partnership Federal agencies (Employment and Training Administration/USDOL) Funding Guidance and oversight States employment agencies Augment federal funds with state funds Set priorities based on state needs and goals (state plan) Provide leadership and administrative support to local WIBs Local Workforce Investment Boards Augment federal and state funds with funds from local partners Set priorities based on local needs and goals (local plan) Administer services Contract with third party organizations to deliver services WIOA: National Workforce Development System

WIOA v. WIA Stronger dual-customer approach—businesses and job seekers Greater integration of services at the one stop service centers Closer ties with business and educational/training institutions Adopt and expand: Career pathways Industry or sector partnerships (local WIBs required to “convene, use, or implement” them) Increased emphasis on the attainment of industry-recognized certificates and credentials linked to in-demand occupations Accountability: Revised performance measurement system—making all programs accountable to the same core metrics Greater evidence-based decision making: Requires all states to use regression-adjusted performance targets for the basis of negotiating targets States required to conduct rigorous evaluation of programs using counterfactuals every two years WIOA v. WIA

Local Workforce Development Agencies Backbone of the workforce development system Pulse on local economy Identifies needs of businesses and job seekers Develops strategic plan for workforce programs Administers WIOA services Determines eligibility for various services, including training Subcontracts with third parties to deliver services Ideally, provide leadership for local workforce development efforts and be a catalyst for convening key partners Local Workforce Development Agencies

Workforce Investment Boards Source: W.E. Upjohn Institute website

WIBs can Serve as Catalysts for Local Partnerships Federal WIOA WIBs serve as conveners and facilitators of informal relationships among organizations within their jurisdictions Horizontal relationships extend from the WIBs to their workforce intermediary partners and local social service organizations State Other service organizations County Government Memoranda of Understanding WIB Local organizations: Under contract Businesses Sub- contracts

CORE WIOA Programs PY2016 (millions of dollars) Total to States High State Allotment Low State Allotment Adult $785.2 $123.0 $2.0 Dislocated Worker 990.5 169.4 0.7 Youth 832.6 128.8 2.1 Wagner-Peyser Employment Service 669.6 81.0 2.2 Adult Education and Literacy 569.4 92.2 0.8 Vocational Rehabilitation 3,046.5 303.3 10.4 Total Core 6,904.6 897.7 19.8 Source: TEGL No. 17-15, Workforce Innovation and Opportunity Act (WIOA) Adult, Dislocated Worker and Youth Activities Program Allotments for Program Year (PY) 2016; Final PY 2016 Allotments for the Wagner-Peyser Act Employment Service (ES) Program Allotments; and Workforce Information Grants to States Allotments for PY 2016, April 5, 2016

Partner Programs Total Allotment (millions $) Carl Perkins $1,076.5 National Farmworkers 72.9 Native American 62.6 Senior Community Service Employment 90.7 TANF 1,555.3 Trade Adjustment Ass’t 349.9 UI RESEA 111.7 Youth Build 79.2 Total Formula Programs 3,380.1 Competitive Grant Approp. 190.9 Total WIOA Required Partners 3,571.0 Partner Programs

Career Services and Training: Adult Program Adult Training Share: US: 10.8% Highest: 93.3% (NM) Lowest: 0.6% (ND)

Career Services and Training: Dislocated Worker Program Dislocated Worker Training Share US: 13.7% Highest: 93.2% (GA) Lowest: 0.3% (NE)

Basic Career Services Initial assessment of skills Provision of referrals to other programs offered by partners of the one-stop service centers Substance abuse Housing Child care medical or child health assistance and many others Assistance with financial aid for training and education programs not covered under WIOA Initial assessment of skills Labor exchange services Provision of referrals to and coordination of activities with other programs and services Provision of workforce and labor market employment information Including job vacancy listings, job skills necessary to qualify for posted jobs Information relating to local occupations in demand Provision of information and assistance for filing claims under the UI program Basic Career Services

Staff-assisted Career Services Internships and work experiences that are linked to careers Workforce preparation activities that help an individual acquire a combination of Basic academic skills Critical thinking skills Digital literacy skills Self-management skills Financial literacy services Out-of-area job search assistance and relocation assistance English language acquisition and integrated education and training programs Comprehensive and specialized assessments of the skill levels and service needs of adults and dislocated workers Development of an individual employment plan Group and/or individual counseling and mentoring Career planning (e.g., case management) Short-term pre-vocational services, including development of Learning skills Communication skills, Interviewing skills, punctuality, personal maintenance skills, Professional conduct to prepare individuals for unsubsidized employment or training Staff-assisted Career Services

Training Services Apprenticeship training Combines education and work experience and results in a portable credential that is recognized by employers nationwide. Customized training designed to upgrade the skills of incumbent workers in specific businesses Occupational skills training Training for a specific skill or for a set of skills necessary to qualify for an occupation Takes place outside the workplace and in a classroom setting. On-the-job training (OJT) Takes place in the workplace Provides job seekers with work experience and skills training that will help them qualify for and retain employment. Typically pays the workers’ employer half the costs of training Training Services

Types of Training Program OJT Skill Upgrading Entrepreneurial training ABE or ESL Customized Training Other Occupational Training Adult No. 12,181 19,164 136 1,474 3,808 52,136 % 13.7 21.6 0.2 1.7 4.3 58.6 Dislocated Workers 6,563 10,031 133 566 562 32,501 13.0 19.9 0.7 1.1 64.4

WIOA serves “individuals with barriers to employment” WIOA Adults and Dislocated Workers programs provide a “pathway to the middle class and to maintain and build skills to remain in the middle class” WIOA gives states and WIBs discretion in defining certain terms (such as self-sufficiency, “unlikely to return to work,” and stop-gap employment) and in establishing criteria and the process for prioritizing services, including training services Once an individual is enrolled in WIOA programs, they face another set of criteria for eligibility to receive career and training services Local WIBs determine eligibility for training for their customers, through interviews, evaluations, or assessments and career planning informed by local labor market information and training provider performance information Eligibility Criteria

Adult Program Eligibility Criteria Eligibility requirements for the Adult program focus on defining low-income individuals and the employment barriers they may face. Individuals must first meet the following criteria: U.S. citizen or otherwise legally entitled to work in the United States; Age 18 or older, and Selective Service Registration for males who are 18 years of age or older (TEGL 37-14) Prioritize services for veterans, their spouses, low-income individuals, recipients of public assistance, individuals with basic skill deficiencies Adult Program Eligibility Criteria

Eligible Trainer Provider List To receive WIOA training funds, providers have to be certified by states and local areas as meeting acceptable performance levels on a variety of outcome measures The percentage of all participants who completed training The percentage of all participants who obtained unsubsidized employment The average earnings at placement of all participants The percentage of WIOA- funded completers who were employed six months after the start of employment The average wages received by WIOA-funded completers, measured six months after the first day of employment If applicable, the percentage of WIOA-funded completers who obtained a license or certificate, an academic degree or equivalent or other measures of skills Eligible Trainer Provider List

Evaluation and Monitoring of Programs Core performance measures reflecting employment outcomes and educational attainment Employment second quarter after exit Employment fourth quarter after exit Median earnings Credentials and educational attainment Use regression-adjusted performance measures in negotiations Conduct rigorous evaluation of programs every two years Use objective measures to qualify eligible providers and direct customers to in-demand training Evaluation and Monitoring of Programs

Contact: Randall W. Eberts W.E. Upjohn Institute for Employment Research eberts@upjohn.org (269) 343-5541